Banking, Winemaking, and Google Analytics

Spring has arrived and the vineyards are bustling with activity. Growers are counting clusters and attempting to size up the crop. Vineyards and the weather are top of mind as the May issue reaches mailboxes, but we haven’t forgotten about the winemaking side, with an inside look at innovations introduced during the Unified Wine & Grape Symposium, and equipment upgrades at one of Napa’s iconic wineries.

It sometimes feels like the “natural” wine craze is spreading like crazy; In January, Wine Business Monthly even published a Varietal Focus story on natural wines—even though the category accounts for a very small slice of total wine sales. So-called “natural” winemakers choose not to interfere and are limited in the tools at their disposal to correct winemaking glitches. On the opposite end of the spectrum are “interventionist” winemakers. This month we check in with perspectives from three such “interventionist” winemakers who prove that they are not out to manipulate a wine. Rather, they hope to guide the purest expression of the grapes using the tools at hand.

But of course, the news over the last month has not been about the vineyard or winemaking philosophies. An article in this issue covers banking, the cost of capital for vineyard and wine-related ventures, and how the challenge of rising interest rates is affecting wineries and growers. Winemaking and grape growing are unique, capital-intensive businesses and interest rates are a big consideration. Interest rates were historically low a year ago and there were more options for financing vineyards and wineries. Today, the picture is different. Interest rates have doubled within a single year.

Moreover, as we found out suddenly a few weeks ago, rising interest rates are risky for banks, too. One bank that had 400 wine industry clients even failed due to losses sparked by rapidly increasing rates. It was since acquired by another bank. Here’s hoping the banking uncertainty brought on by high rates eases sooner instead of later.

On July 1, 2023, the world will change. A new version of Google Analytics, GA4, will be released with the promise of providing marketers new insights about their customers—however, it will no longer use third-party cookies to do so, a result of many of the new data privacy laws enacted worldwide. It’s a major shift that will affect anyone with a website trying to understand their customers, wineries included. If your business isn’t preparing for the shift, it could be left behind. Long story short, your old data won’t import into GA4, nor can you access historical data through it. Google has declared “out with the old and in with the new.” People, get ready.

Here’s to understanding one’s customers, staying up to date, and to successfully navigating the financial waters.

Wine Business Monthly

May 2023 • Volume XXX No. 5

Editor Cyril Penn

Managing Editor Erin Kirschenmann

Assistant Editor Katherine Martine

PWV Editor Don Neel

Eastern Editor Linda Jones McKee

Copy Editor Paula Whiteside

Contributors L.M. Archer, Bryan Avila, Richard Carey, Christopher Chen, W. Blake Gray, Mark Greenspan, Michael S. Lasky

Design & Production Sharon Harvey

Director, Analytics Group Alan Talbot

Editor, Wine Analytics Report Andrew Adams

Events Director: Danielle Robb

Web Developers Burke Pedersen, Peter Scarborough

Marketing Specialist Katie Hannan

President & Publisher Eric Jorgensen

Associate Publisher & Vice President of Sales

Tamara Leon

ADVERTISING

Account Executives Hooper Jones, Laura Lemos, Ashley Powell

Account Support Representative Aidan O’Mara

ADMINISTRATION

Vice President – Data Management Lynne Skinner

Project Manager, Circulation Liesl Stevenson

Financial Controller Katie Kohfeld

Data Group Program Manager Rachel Cunningham

Research Assistant Sara Jennings

Public Relations Mary Jorgensen

Chairman Hugh Tietjen

Publishing Consultant Ken Koppel

Commercial Advisor Dave Bellon

For editorial or advertising inquiries, call 707-940-3920 or email info@winebusiness.com

Copyright 2022 Wine Communications Group, Inc.

Short passages can be quoted without permission but only if the information is attributed to Wine Business Monthly

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~ Cyril Penn